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In order to prepare its cash budget for May, Mustang Company has gathered the following expected information: April 30 expected cash balance, $45,000 Dividends to
In order to prepare its cash budget for May, Mustang Company has gathered the following expected information:
April 30 expected cash balance, $45,000
Dividends to be paid in May, $12,000
Expected cash expenditures in May for operating costs, $36,800
Depreciation expected in May, $4,500
Expected cash collections in May, $89,000
Expected payments for merchandise in May, $56,200
Cash paid for equipment expected in May, $17,500
Mustang must maintain a minimum cash balance of $40,000.
How much, if any, must Mustang borrow in May?
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